Post Office Saving Schemes: Post office offers many saving schemes. It provides not only higher interest but also income tax exemption on different schemes.
The best thing is that in some schemes, the interest received is also tax-free. Here are the details about post office schemes and their latest interest rates.
Recurring Deposit
RD can also be done in the post office like banks. The RD can be done for a period of 5 years. Presently, a 6.5 per cent rate of interest is being given on RD. There is no Income tax exemption benefit in this scheme and according to the rule, income tax has to be paid on the interest.
Monthly Income Scheme
Besides this, Monthly Income Scheme (MIS) is another scheme in the post office. This scheme is offering 7.4 per cent interest. It is a 5-year deposit scheme, on which interest is paid every month. Under this scheme, a maximum of Rs 9 lakh can be deposited in a single name and Rs 15 lakh in a joint name. no Income tax exemption is available in this scheme and income tax has to be paid on the interest received according to rules.
Time Deposit
Post office offers TD i.e. time deposit like FD in the bank. This can be done for the duration of 1 year, 2 years, 3 years and 5 years. It offers 6.9 per cent interest on 1-year TD, 7 per cent on 2 and 3-year TD, and 7.5 per cent on 5-year TD. Income tax exemption can be taken under section 80C of income tax on a maximum deposit of Rs 1.5 lakh in a 5-year TD.
Kisan Vikas Patra
This is to inform you that the money invested in Kisan Vikas Patra doubles in 115 months. This scheme offers 7.5 per cent interest. Income tax exemption is not available on the money deposited under the scheme. Tax exemption is also not available.
PPF
PPF plan is now providing good interest. Under the PPF scheme, 7.1 per cent of interest is being offered. This scheme is for 15 years in which money should be deposited every year. Under this scheme, a maximum of Rs 1.5 lakh can be deposited every year. Tax exemption under section 80C of income tax is offered in this scheme.
Sukanya Samriddhi Yojana
The big advantage of this scheme is the interest received on the maturity of the scheme is tax-free. While Sukanya Samriddhi Yojana offers income tax exemption on the money deposited. The account can be opened in the name of the girl child under Sukanya Samriddhi Yojana. This scheme offers an 8% interest rate under this scheme. It is a 21-year deposit scheme, and the entire money is returned when the girl child grows up.
National Savings Certificate
National Savings Certificate (NSC) is one of the most popular schemes of the Post Office. It offers 7.7 % interest. In this scheme, money is deposited for 5 years. By depositing a maximum of Rs 1.5 lakh in this scheme, the exemption can be availed under Section 80C of Income Tax.
Senior Citizen Savings Scheme is also one of the profitable schemes. It is for the duration of five-year. It offers 8.2 per cent interest on the money deposited. Income tax benefits are also available under this scheme.
